Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF) shares have significant ‘upside’, according to broker Liberum, which reiterated its ‘buy’ recommendation on shares in the Tanzania-focused helium explorer and developer.
Liberum’s ‘buy’ note contained a 19p price target. In early afternoon trade the shares were changing hands for just 9.63p each.
“Helium One’s current share price performance does not fully reflect the work done to date by the company, in our view,” Liberum commented.
The price target incorporates the broker’s belief that Helium One has a 35% chance of geological success, it said, but was not afraid to suggest 54p would be attainable if success was certain.
“The company's key asset is the Rukwa project, which has potential to discover the world's largest primary helium resource, equivalent to 20 years of global supply,” said Liberum, which is Helium One’s nominated advisor.
Research by Oxford and Durham universities reinforced the potential prospects of Helium One’s flagship Rukwa basin project, pointing out “the reservoirs contain[ed] significant helium shows”.
Liberum added that last year’s drilling campaign had “de-risked the proposition, identified a working helium system, and confirmed the presence of an effective geological seal”.